protected over two million people during the holidays. and now they can do it for you. try lifelock's protection 60 days risk-free. call the number on your screen or go to lifelock.com/holidays. it only takes minutes to sign up. use promo code: holidays. order now and get a special holiday gift: a document shredder to keep sensitive documents out of the wrong hands... a $29 value, free! call the number on your screen or go online and let lifelock protect your identity for 60 days risk-free. because during the holidays, keeping your identity protected means keeping your family protected. >> steve: tomorrow, john stossel, michelle malkin andment new miss universe. >> brian: and if you have to run from the tv, run to the radio. xm sirius. we're still in a battle with them. if you don't have them. call. see you. bill: so here we are 2nd of

january. good morning, everybody. after months of wring lynn and rhetoric, congress late last night approving a deal to avert the dreaded fiscal cliff. >> on this vote the yeas are 257, the nays are 167 the motion is adopted without objection the motion to reconsider is laid on the table. bill: with that it was dun, it was dunn. you were probably watching college football but not before widespread tax hikes were baked into the deal. and those drastic budget cuts we talked about for a year, they were kicked down the road. there are many questions on the fine print. i'm bill hemmer. welcome here to "america's newsroom.". nice to see you back. martha: dun to your spelling. i'm arthel neville in more merit that mack today. democrats are hailing the deal as a victory. republicans are saying they were making the best of a bad situation. bill: the deal calls for more spending.

not less spending in the end >> virt wallly no one believes what we have here tonight is a long-term solution. >> we set up for fiscal cliffs. >> we'll look back on this night and regret it. bill: doug mckelway in washington. late night again last night. this is not over. so where are we now or what next, doug? >> reporter: we have a couple of deadlines and a couple of titanic struggles that are too much down the road. that is when the nation reaches its debt ceiling. technically we already reached the debt ceiling but treasury secretary tim geithner says that he has found about $30 billion which can carry us over for another two months. it is also when the sequester runs out. that is when we're girding for a potential big battle over that. will republicans be willing to fight to go down on this

one? listen to what speaker boehner had to say in a statement last night after the deal was struck last night. he said, quoting, now the focus turns to spending. the american people reelected a republican majority in the house and we will use it in 2013 to hold the president accountable for the balanced approach that he promised. many significant spending cuts and reforms to the entitlement programs driving our country deeper and deeper into debt. now, also, listen to what the president said last night after the deal was struck. he seemed to indicate he is willing to entertain spending cuts. here's the president. >> we can come together as democrats and republicans to cut spending and raise revenue in a way that reduces our deficit, protects our middle class, provides ladders into the middle class for everybody who is willing to work hard. >> reporter: now the president went on to say this. while i will negotiate over many things i will not have another debate with this congress whether or not they should pay the bills we have

already wracked up. seems like he is not willing to entertain a fight over the debt ceiling bill. bill: do republicans trust the president's promise when he talks about spending cuts and really taking a hard look at those? >> reporter: bill, from several republicans i have spoken to seems they have this sense or learned to have this sense not to the pay too much attention to what the president says but to pay attention to what he does. listen to this remarkable statement from senator richard shelby on "fox and friends" a few short moments ago. >> i think that the president missed a great opportunity, one of leadership. he is just been reelected. he has four years left and this will be part of his legacy, the failure to step up and do the big thing when he could. he could have brought leadership to the table. he didn't. now he is wanting to talk about cutting spending? it is kind of a joke. >> reporter: some see this looming battle two months down the road for a third round of a prizefight. first round many say republicans won. that was 2000 debt sequester

creation. second round many say the white house won that crafted last night. the third round we'll see. bill: doug, thank you for that. we'll be back in touch next hour. arthel. arthel: the bill may have passed but 167 representatives voted against it, that includes democrats and republicans. tennessee republican marsha blackburn was one of the lawmakers who voted against the bill and she will be here to explain why. that is coming up next hour. bill: we'll look forward to talking to her. how many are taxes going up for those making more than 400,000 a year? the former tax rate on individuals in that tax bracket was 35%. now it will be 39.6%. an increase of 4.6ers. on income of 400,000, that works out more than $18,000 per year to go to washington. that is the low end, as incomes rise as they go up

that amount rises. >> capital-gains tax is going up too. that will tax income from dividends and other capital gains. it will jump from 15 to 20%. that applies to people with 400,000 or families making more than 450,000. now the joint committee on taxation saying this is expected to reduce revenue by almost $290000 over the next 10 years. that is reportedly because it creates less incentive to sell stock. bill: there is a lot of numbers here. we'll work through a lot of numbers over the next two hours. the big story, the big bottom line here? most everyone in america is paying more in federal taxes because congress allows the payroll tax cut passed in december of 2010 to expire. the tax rate paid for social security will rise from 4.2 to 6.2%. that means higher taxes for more than 160 million american workers. those making 50 grand will

see a tax increase of about a thousand dollars because of the payroll tax. arthel: bill, california congressman ed royce weighing in on what he says are trillions of dollars that got lost in the shuffle on the fiscal cliff debate. >> is the real cliff facing this country in the form of a massive wave of entitlement obligations. government accounting doesn't tell the whole story. the actual liabilities of federal government, the present value of medicare, medicaid and social security programs, already exceed $86 trillion. by 2040 our entitlement obligations will consume all of the average post-war projected tax revenue. we have to come to grips with that. we will have to go out and borrow, to pay for other spending should that happen. it is unfortunate that the president wasn't willing to

engage on this front and it is unfortunate --. arthel: well, president obama says spending cuts could come in future deals. so how much more money are we talking about that we'll be putting out? according to the congressional budget office the bill contains $600 billion in new tax increases but just 15 billion in spending cuts. that is reportedly a ratio of 41 dole to one and the deal has more than $300 billion in new spending. bringing in stuart varney, host of "varney & company" on the fox business network. you're not doing the happy dance this morning, are you? >> no i'm not doing the happy dance. let repeat the big picture. taxes are going up. there is no significant cut in spending. in fact spending will go up. the debt continues to mount. arthel, at the risk of sounding harsh we look a lot more like greece as of this morning. some details, everyone who

works as of right now will pay more in social security tax. successful people, big money earners, they will pay more dividend tax, income tax, capital-gains tax. all of this money is taken out of the overall economy that will slow the overall economy. that is just the tax side of the equation. left unresolved is america's fundamental problem which is overspending and massive buildup of debt. i don't want to be harsh but we look a lot more like europe than we did a few days ago. arthel: are strong words, stu. so far the markets are rallying. you're saying hold onto your hats because the wind of changes are coming. >> the market is indeed going to rally. 22 minutes from now wall street opens up you will see maybe a 200 point gain for the dow jones industrial average. this is for two reasons. it's a relief rally because things could have been a whole lot worse. taxes could have gone up across the board and it is a relief rally because there is now a degree, a very

limited degree of certainty about the tax rates that upper income people will face. so we will go up 200 points at the opening bell. how long it lasts is another story entirely because eight weeks from now we face another cliff. that is the debt ceiling cliff. and again that debt problem is thus far unresolved. arthel: so more headaches to come? >> yes. arthel: oh, boy. stu, many lawmakers wanted to get the deal to prevent a negative impact on the economy. here is michigan congressman sander levin on what they needed to do. >> markets reopening around the world, around the world, and all eyes focusing whether this institution can govern. this legislation allows us to get done what we need to get done. this bill is vital for our nation's economic well-being. >> well, again the market is

rallying because it could have been worse. and because a decision, albeit in my opinion a bad one, has been made, which takes some uncertainty out. how long this 200-point rally for the dow will last is anybody's guess. arthel: that's why they had to act, they had to act now but there is more to time. stew varn any, -- varney, thanks very much for your analysis. bill: wee were watching this on times square. eventually they voted 2:00 a.m. on january 1st. right around yesterday at this time we thought the house would put off a vote until maybe today or who knows then. we're working through all this information too. we'll let you know what it means throughout the morning. remember the newspaper that published the names and address of gun permit holders. a bit of irony in the paper's newest hires. we'll tell you about that. arthel: the fiscal cliff averted but at what cost? critics are saying republicans just rolled over on this one. are they right?

>> this is just the first step to getting to the ability to strengthen our economy, create the jobs we so badly need. >> as i said in my opening statement the tax code's a nightmare and it is. it is almost getting late enough to have a nightmare ourselves look what mommy is having. mommy's having a french fry. yes she is, yes she is. [ bop ] [ male announcer ] could've had a v8. 100% vegetable juice, with three of your daily vegetable servings in every little bottle.

>> so because of what we're not doing i can not believe that this tax cut will in fact be followed with the spending cuts offset any part of the three, sorry, the $4 trillion we're putting on the backs of future generations. so i thank all of how will vote for it, i can not bring myself to vote for it tonight. bill: that is california congressman darrell issa, republican, speaking out against the deal. conservative columnist charles krauthamer went even further calling the bill a complete rout, meaning a victory for democrats. >> a lot of conservatives in the caucus, republican caucus in the house who hate

the bill and for good reason. this is a complete surrender on everything. bill: what about that? "weekly standard" stephen hayes, fox news contributor. how are you doing and happy new year to you. >> hey, bill. bill: charles not happy. can you quibble with that at all? >> look i agree with his basic point. i think the important thing here to put this in context. this was never going to be a win for small government conservatives. it just wasn't. the way this situation unfolded going back really 18 months was one in which there was going to be a massive tax increase one way or another. so i think you have republicans both in the senate and the house who ended up voting in favor of this who understood that this was a bad deal. what they were trying to do was avert what in their view was a much worse outcome. bill: but you're raising taxes $41 for every dollar cut. this debate for 4:00 years has been about spending. and on paper, that is absolute capitulation.

now unless there is a grand strategy for two months from now, as some has suggested like senator mcconnell on the debt he will deal, this is like, you're 0-40 on this thing? >> i think there needs to be pro the perspective of republicans or conservatives there needs to be a grand strategy here going forward over the next two months. one of the things i think you can fault republicans over the past several weeks however you feel members should have voted on this particular package, is that there didn't seem to be a very coherent message or cohesive message coming out of the republican caucus either in the house or in the senate and certainly not together. i think what we heard at least in the first 12, 2 hours is that republicans want to use this to turn the discussion towards spending. their argument has been, i think it's a good one, mr. president, you won the election. we gave you your tax increases. this is what you said for more than a year would help us solve our deficit problem. now you got what you made your arguments for.

now is the time to get serious about spending. everybody who can do math in this town and across the country understands that spending is the root of the problem. bill: one more question on the republicans. i want to ask you about the president's strategy in this. when you talk about republicans not having a cohesive message, what would explain the absence of that, steven? >> well, in farther because they were in a very bad spot. in part there wasn't kind of communication between senate and house republican leadership that would have produced that kind of a message. look, to a certain extent you're talking about two very different animals. in the house you have a much stronger contingent of conservatives who didn't like this deal and weren't going to vote for it no matter what. in the senate you have conservatives and small government republicans much more amenable to getting past this to starting this bigger debate about spending. bill: now the president president, did he make a statement he believes this deal would create jobs at any point during these

discussions? >> if he did i didn't hear it and it wouldn't make a lot of sense to me. bill: now why would that be? >> well, because it wouldn't, it wouldn't create a lot of jobs. you don't have to go to the cato institute or heritage foundation --. bill: why do a deal if unemployment is where it is and jobs and economy was the big deal during the election? >> i would argue this all goes back to politics. the president started a 2012, a little over a year or less than a year ago today, now when the president introduced this "buffett rule" argument. and he focused on it his state of the union. carried through the first six months of 2012 and he campaigned on it through the election. he wanted to raise taxes on the wealthy and he wanted to do that i think largely to make a political argument against republicans. to pit republicans, the wealthy against the middle class, to make a class warfare argument to win the election. in effect what he has done here is bad economics but

smart politics and remember, the president himself made the argument that raising taxes in a struggling economy would be bad for the economy, would hurt it and kill jobs. bill: you're right. this is not just the wealthy. 77% of the u.s. households see a tax increase in 2013 because of the payroll tax cut. that is not getting any attention. >> no, it is not getting nearly the kind of attention it ought to be getting. one of the reasons republicans if they're smart, will look forward and not talk about the benefits, supposed benefits of this bill. you heard some members, both in the house and the senate over the past couple days on the republican side sayingings look, there were good things in this bill. we saved a lot of bush tax cuts. if i were advising republicans i would say end that discussion. you do not want to be seen in the public eye touting the benefits of this supposed package because of the process and, because of the coming payroll tax hikes. people who haven't been paying attention are going

to get hit by this and understand this was a raw deal for them. bill: steve, thank you. we'll see you later on "special report". stephen hayes on washington. tucker carlson, alan colmes coming up in 30 minutes with a different take on this. steve, see you soon. here is arthel. arthel: a oil rig runs aground off the coast of alaska. worries about a potential environmental disaster. we'll have the latest on that. bill: where is all the money raised by the fiscal cliff deal headed? why hollywood and train tracks might be the big winners here. how do you explain, that arthel? arthel: i don't know. but we'll explain it. bill: get your ticket. ♪ . [ ryon ] eating shrimp at red lobster is a fantastic experience. 30 shrimp for $11.99. i can't imagine anything better. you're getting a ton of shrimp, and it tastes really good! [ male announcer ] hurry in to red lobster's 30 shrimp for just $11.99!

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♪ . bill: yes, there are some winners, some unexpected winners you could say after this deal. the joint committee on taxation reports hollywood gets $248 million to encourage film and tv production. producers can expense up to $15 million for said project. 331 million goes to railroad operators to maintain the train tracks. and the federal government refund $222 million to puerto rico and the u.s. virgin islands in excise taxes forum produced there and shipped to the mainland. that might not be a bad idea. kidding. get this. $59 million goes to algae growers to encourage production of biofuels. if you're looking for a different line of work a all this, arthel, you can grow algae and might get a tax break that day. arthel: there is algae growing in my shower.

i that might be different. bill: could be. algae takes years to grow. you have to collect a little hell bit. arthel: this is difficult morning for dozens of students and teachers who survived the tragic shooting at sandy hook elementary. this is brand new video of them heading to their new temporary school for the first time since the shootings. it is in the neighboring town of monroe, just seven miles from the shooting site. david lee miller is live from there now. david, can you tell us what the plan is? >> reporter: this is a very special day, arthel. the plan today is to what is being described as an open house here in monroe. students and parents this afternoon are going to visit the chalk hills school. this is going to be the temporary school, at least for the foreseeable future for students who attended sandy hook and there are signs up all over town well coming the students and welcoming their parents. you might recall that the principal of sandy hook was killed during that rampage

so valiantly trying to save the lives of students in her care. now the interrim prince approximately -- inches principal was come out of retirement for sandy hook posted on the school's website this message quote i want students and families during the loss of their precious children to know their loved ones are foremost in our hearts and minds as we move forward. we recognize your needs are paramount in our preparations and planning. again in the next few hours parents children, and parents will see their new school. actual classes are scheduled to begin tomorrow. arthel. arthel: david, talk about security today. is it tight? >> reporter: security as you would expect is very tight. there is a check point set up just outside of the school, from what we could tell, all vehicles are being stopped. interestingly the media is being kept away. i'm speaking to you now from a park in the town of monroe

about two miles from the school itself. this is the closest that any media is being allowed. we're told that all locks, the exit doors, the fire alarms at the school have all been checked but the preparations, arthel, go much beyond just security. officials want to make the children feel as comfortable as possible. one of the things that they have done is to bring things like the desks, the decorations, many of the classroom furnishings to this new building, to try and normalize the situation as much as possible. one of the things that they have done, they have even taken the jackets that were in the old school and placed them behind the chairs in the new school. in the words of one official, it looks like time has stood still. arthel? arthel: what an emotional day and what a task that they have to overcome there. david lee miller, thank you very much for the update. bill: monroe is about seven miles away from sandy hook. it is not that long in distance. a lot of parents up there say, we just want to put our

kids back on a regular schedule to try to move forward. for a lot of kids it is tough. imagine the parents now too. talking with each other trying to figure out what is next. arthel: can't imagine it. bill: listen, arthel, it is the saddest town in america. arthel: what is? monroe? bill: sandy hook. arthel: absolutely. i can't imagine what they're dealing with. putting coats on the back of the chairs, that visual just hurts my heart. bill: we pray for them. arthel: absolutely we do. bill: 27 minutes past the hour. doctors say she has a blood clot between her brain and skull. so how is secretary of state hillary clinton doing on her recovery? we'll check in on that. arthel: lawmakers from new york and new jersey irate last night. the house failed to vote on billions of dollars in aid for victims of superstorm sandy. new york congressman peter king joining us live to talk about that. >> we can not turn our backs on our citizens who need us. some who will not have a

place to stay for a long period of time. people who have suffered. people who need food. we are americans. this is what is supposed to separate us from everyone else. i am absolutely shocked. but she loved it so much... i told her it was homemade. everyone tells a little white lie now and then. but now she wants my recipe [ clears his throat ] [ softly ] she's right behind me isn't she? [ male announcer ] progresso. you gotta taste this soup. >> announcer: 'tis the season of more-- more shopping, more dining out... and along with it, more identity theft. by the time this holiday season is over, an estimated 1.2 million identities may be stolen. every time you pull out your wallet, shop online or hit the

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service guarantee. in fact, last year, lifelock protected over two million people during the holidays. and now they can do it for you. try lifelock's protection 60 days risk-free. call the number on your screen or go to lifelock.com/holidays. it only takes minutes to sign up. use promo code: holidays. order now and get a special holiday gift: a document shredder to keep sensiti documents out of the wrong hands... a $29 value, free! call the number on your screen or go online and let lifelock protect your identity for 60 days risk-free. because during the holidays, keeping your identity protected means keeping your family protected. bill: a bit of breaking news right now outside of the capitol city, washington, d.c. this is vienna, virginia. much suspicious device apparently located in a parking lot and all the businesses in that the area have been evacuated. there is a bomb squad

en route to the seen. they have not yet arrived. a lot of the traffic has been diverted as they try to figure out what this devices. it was described as an explosive device in the merchant tire parking lot but beyond that there is not a lot of description. so we're watching this image by way of the helicopter and wttg. police on the scene in vienna, virginia. they have roped off the area. they expect i had to be closes three, maybe four hours. they also say they're not sure what the devices or who discovered it. whether they made a phone call and who alert the police and authorities. so they're checking that out right now to figure it out. a bit of breaking news, vienna, virginia. get you updates in a moment here. arthel. arthel: there is this. anger and disbelief in congress. last night the house decided not to allow a vote on the superstorm sandy relief bill that would send aid to millions of storm victims it. that decision sending shockwaves through the entire new york area

delegation. >> everybody played by the rules, except tonight when the rug was pulled out from under us. absolutely inexcusable. absolutely indefensible. we have a moral obligation to hold this vote. >> mr. speaker, we can not turn our back on our citizens who need us!. >> i have to go home to tell them their new year's give they will wait evening longer even longer for something else they should have had over a month ago. >> this is an absolute disgrace and the speaker should hang his head in shame for not allowing this to come up. arthel: joining me new york congressman peter king. chairman of the homeland security committee. i have to ask, what were they thinking, congressman? >> arthel, this was absolutely indefensible, inexcusable. we had been meeting talking about myself, congressman grimm, congressman low bianco, new york and new jersey delegations governor cuomo, governor

christie, mayor bloomberg, we were promised this vote was coming up. every penny asked for was documented. every document we asked we gave them. we were told everything is fine. it was actually on the house website. the bill was going to be voted on. last night we started to hear that maybe it would be pulled. maybe wouldn't be held. we confronted john boehner on the floor and asked them. wait until the fiscal cliff vote is over. we'll take care of it. we were told 99% certain. no one even told us, the speaker walked off the floor. told an aide to the majority leader that congress was finished. there were no votes and they come back and told us. i'm not taking this as personal offense. i'm talking about the thousands of people in my district, hundreds of thousands of people throughout the new york, new jersey area. within 10 days after katrina, $60 billion was appropriated. nine weeks after sandy, not one penny has been appropriated. let me just make this one point. these republicans have no problem finding new york

when they're out raising millions of dollars. they're in new york all the time filling pockets with money from new yorkers. i'm saying anyone from new york and new jersey who contributes one penny to congressional republicans is out of their minds. what they did last night was put a knife in the back of new yorkers and new jerseysy anns is an absolute disgras. arthel: i felt that knife. i'm from new orleans. we suffered through katrina. we lost 10 family homes. i lost all my childhood memories. i'm quite personally outraged. thursday you have to newly-elected congress in place. you guys have to start from scratch. is there any hope to get this back on the books and get a deal done quickly? >> i don't see how. the reason i say that is, we're not in session next week. the following week we're in session two days. then you have the presidential inauguration. then you have the state of the union. we'll be into february. and by the way there is opposition among republicans to giving the $60 billion.

they want to give us $27 billion which is the money they have to give us anyway. so last night was really the chance to get it through. that was the arrangement was made. we played by the rules. we did everything they asked us to do. governor cuomo talking to him last night. he is outraged. governor christie is outraged. mayor bloomberg is so disappointed what happened here. we're not looking for anything. say treat us the same everybody else has been treated. why the republican party has bias against new york, bias against new jersey, bias against the northeast. they wonder why they're becoming minority party. why we'll be party of the permanent minority. what they did last night was so immoral, so disgraceful, so irresponsible. supposed to be the party of family values. you have families starving, families suffering, families spread all over living in substandard housing. this was a disgrace. they are inexcusable. they had it. as far as i'm concerned they're on my own. they will have to go a long way too get my vote on anything. arthel: i really share and feel your pain and, i want

to believe that something, i know you said, it is not going to happen right away. any upside, anything can happen before february? anything? i know at one point, pardon me, they were talking about the 27 billion temporary relief but that is offer the table too, right? >> everything is off the table. we'll get something as it goes along. each day that goes buy the damage is compounded. for instance, new york city subway system, brooklyn battery tunnel, waste water treatment plants in nassau county. nassau county alone has $6.5 billion in damage. the county executive said budget was on the precipice anyway because of tough fiscal times. how does he pay all money incurred, all expenses incurred, how does rebuild. governor cuomo in new york, governor christie in new jersey. governor christie is republicans put him out front, he is our man, blue-collar candidate, represents the heart and soul of the republican party. went everywhere for republicans all over the

country. he went everywhere, and what they do? knifed him in the back. arthel: have you spoken to governor christie? >> i spoke to governor christie last night. i'm not doing production work for your television show. you want to get a good person to explain this governor christie. he went through this day in, day out with us for the last week when everything was planned. he did everything he was asked to do. he got most detailed documentation as did governor cuomo and mayor bloomering about. hear them saying there was pork in there. there was this. whatever was in there they didn't want that was put in by the senate we took out. that was a streamlined bill last night. and they just took it off the floor. if they even told us why. instead they snuck off in the dark of night. arthel: well, i can't believe this is not, the relief is not getting to these poor families that need it, business owners, et cetera. congressman peter king, i applaud you in your efforts to keep fighting for the people. that is what it is about. it is not about politics. it about those people. >> absolutely.

arthel, thank you. arthel: if we get governor christie on to talk about it more we'll do that. >> thank you very much. bill: while you were talking, arthel, with peter king, we were watching the markets. eight minutes into trading. check this out. the indecision is out of the way at least for a day anyway. we're up 230 points on the dow 30. that is 13,333? it has been sometime since we've seen a number like that. stu varney warned us about half an hour ago there is no telling how long the rally lasts especially since the country is once again approaching the debt ceiling. that will be the debate the next 60 days. we all know how that went the last time around. we'll take it for now. 230. the bulls are off and running. the new year, meanwhile, supposed to be a time of new beginnings and hope. many americans already believe 2013 will be a tough one. brand new "gallup poll", 65% believe 2013 will be another economic difficult year. that is almost a two to one margin.

gallup says this is one of the most negative reactions to this question they have received since they first started asking it back in 1965. arthel: i would like to know some of the details as to what people are thinking, what they're really concerned about. bill: pop the cork on that baby. megyn and i were out the other night in times square and i was recalling last year it was good riddance to 2011 because we hated that year. and it was good riddance to 2012 because we hated the last year we just went through. now 2/3 of folks are saying this one will be bad too. arthel: we're two days in. we can't keep -- my goodness. bill: you're point about katrina is very well-taken by the way. there is air port out of long island, a executive airport. 15,000 cars, 15,000 that have been damaged or destroyed ult as a result of sandy. they're sitting there ready to go up on the auction block to be taken away for parts. that is one place. arthel: these are not people

shiftless and lazy. people thought after katrina nobody wants to help themselves. you can't. your entire area destroyed you are in need of help from outside, period. bill: we'll see if they get it eventually. here is to 2013 right? smile. arthel: woohoo!. i will calm down. remember the new york newspaper that published the addresses of locals with gun permits? guess who they just hired. we will have an update on that. >> the deal is done and the next fight is already set, america. president obama and speaker boehner are sharpening their knives. fair and balanced debate moments away with tucker carlson and alan colmes. arthel: looking forward to it.

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arthel: good to see you on this tuesday morning, wednesday morning. the new york newspaper that published names and addresses of people in the area who hold gun permits now hiring armed guards to keep its employees safe. according to local police report the editor of "the journal news" says she feared for her life after receiving a avalanche of threating phone calls and e-mails. police concluded there was never really an actual threat. last week the journal you may recall came under fire, heavy criticism after publishing this interactive map you're seeing on its website features names and

addresses of everyone in the area containing a pistol permit. without clarifying whether the person even owned a gun. the guards were reportedly be stationed outside the newspaper's office until at least today. bill: so the big d.c. deal is now setting the stage for washington's next big money battle. the nation nearing $16.4 trillion debt ceiling. once we reach it the government does not act they will not be able pay its bills. house speaker john boehner warns, quote, american people reelected a republican majority in the house and we will use it in 2013 to hold the president accountable for the balanced approach he promise the. president obama is not planning for any lengthy battle on the debt matter. >> while i will negotiate over many things, i will not have another debate with this congress over whether or not they should pay the

bills that they have already remarked up through the laws they passed. i let me repeat. we can't not pay bills that we already incurred. if congress rethe united states government the ability to pay these bills on time, the consequences for the entire global economy would be catastrophic, far worse than the impact of a fiscal cliff. bill: what about all that? and are we really just warming up the, well, the dogs in the cage? alan colmes, host of alan colmes radio show, tucker carlson editor of "the daily caller" and fox news contributor. great to have you both on. >> happy new year. bill: happy new year to both of you. i don't know, tucker, i guess if you thought this fiscal deal was a big matter, buckle up. >> well the president says he won't debate it. he will debate it. this will be a debate. nobody argues a debate over the fiscal cliff is the best way to cut spending but there is no other way. it is not a republican

talking point to say the debt is out of the control. at end of the bush administration the debt equaled 65% of the gdp we're now over 115% of gdp our debt is bigger --. bill: that is double. >> so using this debate as he have leverage not to not pay our bills, that is talking point that is false thing the president said, but to curtail future spending is really the only option. the ps has shown no willness seriousness to cut significant spending period. bill: alan, what do you think about that. >> there congress, if they really cared about the debt and really cared about the financial security of the country, they wouldn't be threatening a debate on raising debt ceiling with you has been raised 70 some odd times since 1962. seven times during the previous administration. and this is for, as the president pointed out in the clip you just played for money already spent, spent by this congress. to have argument or debate and create further uncertainty about the debt ceiling would only again give moody's, for example, a chance to lower our bond rating.

we don't want that to happen. bill: you want the government to keep spending unchecked? you're making case there shouldn't even be a debt ceiling. >> shouldn't be a debt ceiling. because debt ceiling pertains to money already spent. issue is spending itself. if you don't alou debt ceiling to pay for bills already incurred we default and then we've really got a problem. debt ceiling is phony issue. not phony for us to talk about, it is for money already spent. bill: all right. tucker, let you respond to that. ceiling first established in 1917. put on the screen. raised 102 times since first created. congress voted to raise the debt limit 11 times since 2001. i saw you shaking your head, tucker. >> of course we had this almost 100 years. this was created when we issued debt to fund the first world war. we're not getting rid of the debt ceiling. factual point i think alan misstated here. the credit rating was not downgraded over fiscal cliff

because our balance books were out of whack. the rating agency said so at the time. u.s. government's debt to be too big. by the way to be totally clear and viewers may not understand this, the official debt number doesn't include entitlement obligations or mortgages held by fannie and freddie. it is a fraction of actual debt. actually debt is $16.4 trillion. ratings said again and again. that is too much a large percentage of your gdp if you want to reassure markets get your debt lowered. >> moody's said uncertainty created by the congress could not come to a deal and played around with the issue of the debt ceili continually raised every single time it come up in the past except for when president obama was in the white house. that is what the issue is. bill: alan, does 16 trillion period of time you? does the arc toward 20 or $22 trillion bother you? >> in a vacuum of course it sounds horrible but don't forget we had to do spending over last six years because of collapse of the economy, starting with the bush administration, continuing

with obama stimulating both, getting banks back on track. bill: you heard tucker said. it doubled since this administration. >> it doubled because of need to continue these policies and to stimulate the economy. now that you spend it in order to --. bill: stimulus. health care? >> here is one sentence point, alan, nobody can defend this level of debt. it is poison future growth. everybody understands that. what is the plan to curtail future spending? you can't balance this budget on backs of top 2%. we learned that, about to learn it in concrete terms. >> back of lower 98% either. certainly lower five to 10% who can barely afford to pay their bills month to month. bill: so you raise taxes and try to figure out how big the shovel needs to be? >> you get out of wars. crows military bases around the world. number of things we can do. let's get out of afghanistan. bill: what is incredibly absent debate. no one told how the deal

would create jobs an economy and make it stronger. tucker, thank you. alan, thanks to you as well. >> thank you, bill. bill: to our viewers at home hemmer@foxnews.com is the e-mail. on twitter shoot me a tweet @billhemmer. because you asked, bya. those two gentlemen laid out numerous arguments we will have in the coming months. 140 characters. arthel: you will hear a lot. a potential environmental disaster off the coast of alaska, tanker carrying 150,000 gallons of fuel run aground. why this won't be easy task for the coast guard. bill: turning that old iphone into a row pot -- robotic buddy. arthel: oh, really? ♪ this is $100,000.

we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money? if your bank takes more money than a stranger, you need an ally. ally bank. your money needs an ally.

bill: with the new year now is your chance to have your very own affordable robot. finally it is here. las vegas create ad pint-sized gadget that comes alive when plugged into your iphone. hot dog. essentially the turning the phone into a robot. they're calling it romo. >> you see everything that the robot sees. kind of like skype. if you could move around in a three dimensional space. the advantage of using a smart device as romo's brain, people already have the devices. bill: he is capable of learning behaviors and play games, words with friends. has wheels to move over rough services. the robot will set you back 150 buck. >> can it cook is the question. bill: that is good question for itunes. arthel: well, high winds are keeping coast guard crews from getting a closer look at an oil drilling rig that ran aground in alaska. right now the rig appears

stable off of a small island near cody yak island. it is carrying about 143,000 gallons of diesel fuel and 12,000 gallons of hydraulic fluid. anna kooiman is in the new york newsroom following the story for us. good morning, first of all. >> reporter: good morning. arthel: is the weather the from here? >> reporter: certainly is. forecasts again today letting us know the storm eased up a bit but gusts up to 35 miles an hour and thirty foot waves are forecasted for today. once the weather does cooperate, arthel, marine experts will board the rig to take photos and videos to come up with a salvage plan. the royal dutch/shell rig is stable but they are concerns the rig could leak fuel and diesel and hydraulic fuel. they were pulling the rig for maintenance last week when weather forced crews to go to area to cause least amount of environmental

damage. arthel: so, anna, is there a real concern that a spill could happen. >> reporter: well a spill response team is preparing a plan and mobilizing equipment in the event that a spill should happen. a spokesperson for the team tells us aerial pictures show know signs of a leak. an official from shell says the rig recently had $292 million of improvements done. it is built with reinforced steel that is three inches thick. the habitat is home to harbor seals, sea lions, salmon and at least two endangered species. the top democrat on the natural resources committee, congressman ed markey is sharing his concern with this statement. oil companies keep saying they can conquer the arctic but the arctic keeps disagreeing with the oil companies. drilling expansion could prove dissasstries for this sensitive environment. shell alaska operations manager says once the situation sunday control they will investigate the cause. the representative wasn't certain whether the findings

will be made public. the coast guard plans to investigate and says they will make their findings public. arthel? arthel: we'll be interested in hearing the findings. anna kooiman, thank you. bill: taxes are higher for millions of americans. it may not end there. new signs president obama is ready for a slew of more taxes in 2013.

bill: the deal is done in dc and a new year and new fears that

the white house is getting ready to unleash the tax hounds yet again. only hours after the deal was signed new signs that democrats may not near leak finished at this point. so what is next? good morning, everybody, 2013 is here. i'm bill hemmer, welcome to big welcome back to you. arthel: i'm arthel nevada ver arthel neville in for martha maccallum. republicans that opposed the fiscal cliff deal said we need more spending cuts from the president and seem to signal that more taxes are on the table. bill: ed is with us. happy new year to you as well. what is the hidden story in this. ed? >> reporter: the hidden story is in order to pay for all the spending. the dots don't add up to anything. if you look at every decision this administration has made since he was initially elected none of it adds up to new jobs and the economy growing.

what it does add up to is how do we pay for all of this spending? the way we'll pay for it is a silent killer, it is called printing of money that makes the cost of everything go up. in a weird way, in a facts you'll way rising costs are also a tax on everybody. bill: we've been printing money for a while. you're suggesting that continues. what is the effect of that,ed? >> that means that more people will have less money in their pockets. it doesn't mean if you're lower income, middle income or dreaded horrible higher end neck earners, everybody's cost has come up, less money in pockets, less money in the economy. where are the jobs going to come from? if there is less money in the economy and in people's pockets there will not be job creation. that is the spring board tore an economy to grow. he's successing all of that right out of the economy. bill: the point we were making earlier is after all this di

discussion on the fiscal debt deal nobody talked about how it would help the economy and help people go back to work. >> it doesn't. one other thing that people have to watch. we are talking about the stock market and that moves up and down for a variety of reasons. the thing everyone has to watch is the ten-year treasury note. as interest rates rise the cost of for country to barrow money increases, which means we have to print money and makes your cost go up in order to pay the interest on that. this is a financial armageddon that we are creating at this moment. everybody says we got a deal done, we got a deal done, people need to understand exactly what that means. it means right now less money in your pockets, more printing of money, your costs go up. your electric bills, your gas bills, food bills go up, everything goes up as a result of this deal and your lives will look a lot worse. bill: the argument you're making is it's a hidden tax on

everyone. >> that is exactly right. bill: have you seen any indication out of washington as to how they will end this vicious cycle? >> no, you heard it last night. right before the vote i think or maybe even right after the vote more taxes on the wealthy, more taxes on everybody. when the president says we are not going to tax the middle class, he just flat out stood in front of everyone and lied because taxes have gone up on 75% of everybody simply by not extending the payroll tax cuts. it's going to be tax -frbg teixeira, tax, slower economy and i see nothing coming out of washington that will help. bill: waoeupbl deaf srer to mo we will inch dea endeavor to move forward. arthel: every american worker is getting hit by higher taxes. last night's fiscal cliff allows the payroll tax holiday to expire raising social social

security taxes by 2%. if you make $30,000 a year you'll pay $30,00 30 you'll pay $600 nor. income of $50,000 you'll pay $1,000 more. incoming of 200,000, $2,000 more. bill: twice as many democrats voted for it as republicans. john boehner voted yes, his number two majority leader eric cantor voted no and there will be another fiscal fight over the next two months, that's when military cuts are due. they kicked them down the road. that battle will now be joined over the next 60 days and we'll see what we get in the end after

that. arthel: there is a limit on how many ad advil you can take in one day. bill: then you have to shift to ae alieve. we talked about military cuts and cuts to medicare, none of that was addressed in the drama we just watched unfold, none of it. arthel: no. let's get to this now the medical scare for america's top diplomat, secretary of state hillary clinton remains in a new york hospital where she is being treated with blood thinners for a blood clot lodged between her skull and her brain. molly henneberg live in washington with more. >> reporter: doctors say secretary clinton is making excellent progress, is in good spirits and should make a full recovery. she remains in new york presbyterian hospital as doctors monitor that brain clos. the the blood thinners should resolve it. clinton did not suffer a stroke or neurological damage from the clot. it's been a rough month of december for the outgoing

secretary of state, though, she returned from a trip to europe in early december and got some type of stomach virus that left her severely dehydrated. she had to cancel a trip to the middle east and north africa. later in mid december as she was recovering there the virus at home a spokesperson says she fainted and got a concussion. she didn't go to the hospital at that time but had to schedule her scheduled december 20th testimony before trial on the benghazi-libya attacks. the secretary did go see a doctor for a follow-up exam recently and that doctor found the blood clot. secretary clinton was admitted to the hospital on sunday. lawmakers, including former democrat now independent connecticut senator joe lieberman says they hope the secretary can answer questions on benghazi once she is healed. arthel: thank you very much. for more on secretary clinton's conditring in dr. marc siegl fox news medical a teamer and professor of medicine at langone medical center.

doctor, i understand you've be talking to mrs. clinton's doctors. what is the latest words. >> of course we want to preserve privacy here, that is the most important thing. with celebrities you get a lot of information out in the news but they still have a right to their privacies. the doctors she's under the care ever i'm going to tell you right off the bat, her neurologist is probably one of the top in the country in handling this kind of thing, head trauma, strokes, risks of strokes, miss beings of bleeds. he's tremendous. it looks like with her situation right transverse venus sinus tropl bow sis, that is a lot of words but what it is is it's where th veins collect and it's where they drain. i think because she suffered head trauma that increases the risk of this kind of thing kufrplgt is that the only issue here? there are other issues here as was mentioned by molly, the risk of dehydration having been ill

before that is a possibility. could she have an underlying tendency to form clots? they will have to look into that. this is a very risky situation, but the good news is once you treat a patient like this with blood thinners and they do well for a few days the way she has the prognosis is much, much better and the risk of stroke goes way, way down. it is good news she didn't seem to have a lot of symptoms, it was found during a routine tkpapl which is another great thing that the physicians did for her. arthel: that is very good. the blood thinners they have mrs. clinton on i understand is going to dissolve that clot. you mentioned something about the previous conditions in 1998 mrs. clinton had a swollen right food, doctors found out it was due to a cl to, behind her knee. that is the question i wanted to ask you the possibility of this sort of thing recurring. >> this is a fetal lee different kind of situation. you know, there's been a lot of discussion, what about being on

planes and there is cases in the literature, medical literature of people who have been on planes for a longtime that can develop these kind of clots in the brain. generally this is a very different situation. what is really interesting is they can't fully test her to see if she has a tendency to form these types of things until she off the blood thinners because you can't get full results. she needs to be on a medication called cumadin for several months after she leaves the hospital. her doctors are optimistic that she will fully recover from this. arthel: we wish secretary of state clinton well. dr. marc siegl thank you very much for putting it into perspective for us. bill: we are also watching developments concerning former president george h.w. bush. he was moved back to a regular room over the weekend at methodist hospital in houston, texas, coming after he spent several days in the icu due to a

bronchitis-related illness. mr. bush continues to improve and thanks everyone for their prayers and good wishes and we certainly send ours. had to be a tough christmas down there in the hospital for him and the whole family. arthel: continued healing to president bush. bill: that's right. arthel: 167 house members voted against the fiscal cliff deal. marsha blackburn was one of them. she joins us live to tell us why it's a bad deal for america. bill: there is tragedy when a man tries to take a picture of pop star justin bieber. what in the world happened here? arthel: yeah, and a man catches a thief breaking into his house from the most unlikely vantage point, while in the air. bill. >> i would be willing to play a lottery ticket number on that one that it doesn't happen that often, so he got extremely lucky that happened to be in the right place at exactly the right time.

arthel: new reports of a man killed trying to snap pictures

of pop star just taoeupb bieber. los angeles police pulled over a white ferrari last night. the car is owned by justin bieber but he was not in the car at the time. another driver recognized the ferrari and got out to take pictures. in the process he was run over and killed. a friend of the victim says he wasn't even part of the professional paparazzi. >> i just came to pay my respects to him. he was a great kid. he was just a kid. i i 0 know som know some people will say another crazy prapz tryincraze crazy paparazzi trying to make the money. he was not a paparazzi, he was a kid from new mexico. arthel: police say the driver who drove the car is not at fault. bill: a lot of lawmakers holding their noses because of the bush tax cuts being preserved for millions of americans. the deal taxes three-quarters of americans and it barely contains a dime in spending cuts and adds

$4 trillion in the national death. all that was too much for mash that blackburn, among the 151 republicans voting no on the house side. good morning to you and tha you for your time. >> good morning. bill: what did you not like this are about this. other than everything? >> well, as you've said, there is a lot not to like this the bill. it doesn't have spending kurbgts icuts. it doesn't show any kind of fiscal restraint. it continues to give special interest tax breaks that said need to be off the books and t it runs up the long term debt. and you people kicking the can, give me the can, what we're going to do is draw a line in the sand and start demanding that you don't bring anything forward unless you have the spending cuts. bill: there are some republicans who did vote for the, including the house speaker and other -sz.

others? why? >> that is a question to ask them. i never speak for anyone else. i know some liked the idea that there was permanency in the tax code. that is something we have fought for. the deal is this. if we hadn't been fighting for these things there is no telling how bad it would have been. and what we have to do is make certain that spending cuts are first and foremost in the minds of the american people. we cannot continue to run a $4 billion a day deficit, a trillion dollar a year deficit and have a 16 trillion-dollar-plus national debt. we cannot afford this. bill: i don't think you would find a lot of disagreement if you walked the halls of the capitol on that. so often on the outside what we hear about are politicians fighting for political victories and not fighting for how the country can win. >> that is exactly right.

good policy should make good politics. what we need to be thinking about is the next generation. our children and our grandchildren, look, when you have this amount of debt, what we are doing is taking the futures of our "little children" and grandchildren that are dreaming big dreams, kids who are in elementary school, middle school and high school and we are saying, look we're going to cap your future and trade it to the people that own this debt. it has to be dealt with, and the people who create it, they've got to deal with it, and if they don't have courage -- bill: but you know this takes guts, these are big, big decisions. >> it does. it is. bill: do you think this president has the guts to do it? >> well, i was very disappointed in his demeanor, and the comments that he made last night, wanting no fight over the debt ceiling, are you kidding me? you know, people are demanding, our constituents are demanding

that we focus on this and i had constituents who said marsha if you need to raise my taxes, raise my taxes. they changed their tune when they found out that the money from the additional taxes did not go to pay down the debt but was going to use to incentivize guess what, more spending. people have had it. washington needs to be put on a mega diet. bill: do you think -- and good luck with that. we've been waiting, the american people are waiting. >> yeah. bill: do you believe and do you buy mitch mcconnell always argument, the republican senator from kentucky, when he says we play with a much stronger hand when it comes to fighting over the debt ceiling in order to enact the spending cuts and get the entitlement reform? do you buy that? >> i tell you, i think our strongest hand is when we say, no. no, you're not going to be able to spend more money. i think every federal department and agency should do what

republicans in the house have done, we voted to cut our budgets by 11% across the board, across the board cuts work, our states use them, local governments use them, the federal government is not exempt from this. they need to make these cuts. we have to get this fiscal house in order. we have to deal with the trust funds, which are social security and medicare and we've got to worry about the next generation, not the next election. bill: marsha blackburn, thank you. >> thank you. bill: we appreciate your time. 18 past. >> absolutely, thank you. arthel: new developments in the penn state scandal, why the pennsylvania governor is taking the ncaa to court and why state and federal lawmakers are backing him up. bill: we've been told that al-qaida shinmoedake on its heels, the president said that. apparently they didn't get the bounty. the chilling new threat against

one of our diplomats serving overseas.

bill: there's been a lot of indecision in washington during the month of december. now that the dole has been cut the markets react. big move on monday during new year's eve and a big move today. markets were closerred yesterday. we are waiting on this. that is the first reaction from investors up 263, on the dow 30. if your 401k is loaded up, it's got a little more fire power today. watching that 263 the up side already. arthel: bill, chilling developments in the middle east, we are are tracking new reports that al-qaida is now offering a

bounty for the murder of the u.s. ambassador to yemen. pete peter doocy is live. >> reporter: al-qaida in the arabian peninsula says they award anyone who a nass natures with three kilos of gold. that in english translates to al-qaida's reward. the middle east media research institute or memory has been tracking actually several twitter accounts that have been posting audio clips, calling for the murder of firestein who is referred to as the jewish u.s. ambassador. he's a married father of three who has been posted throughout the middle east in his nearly four-decade-long career. he joined the foreign service in 1975 and has served in pakistan,

taoupb tunisia, saudi arabia. this is good for six months. his life is not the only whose life they are trying to pay terrorists to pay. there is a reward being offered to anyone who kills any american soldier in yemen. arthel: peter, last the state department stepped up security in light of these threats? >> reporter: a state department spokesman emailed this morning to say they were taking these threats very seriously and the spokesman added, this is a quote, as you know our embassy in yemen already operates in a highly sensitive and difficult security situation. we continue to support the government, military and people of yemen in their efforts against violent extremism and terrorism. remember that the four-month anniversary of the u.s. ambassador to libya, chris stevens murder is next friday. back to you.

arthel: thanks for that report. bill: a whole new context after ambassador stevenseports on onee bloodyist attacks in syria, a shocking estimate of the casualties on the ground there, and n now we hear the rebels are mounting a new strategy. arthel: washington swerving hard to avoid the fiscal cliff. did lawmakers do anything to address the country's real problem? >> all that's left is spending cuts, so the only question we have to ask ourselves is what programs do we cut and how deep do we cut them. we have to look back on this night and regret it notwithstanding the fact that 95% of us apparently will vote for it. oh! progress-oh! [ female announcer ] with 40 delicious progresso soups at 100 calories or less, there are plenty of reasons people are saying "progress-oh!" share your progress-oh! story on facebook.

bill: one of the matters that continues to be debated in the house is what to do about the victims of hurricane super storm sandy. this has got even heated. jerry nadle remember, moments ago from the state of new york, listen to how he characterized this debate. >> new york, pennsylvania, new jersey residents, less aid when we gave to the south, who i can we treat an entire region of the country this way? it is the most disgraceful action i've seen in this house in the 20 years i've been here. bill: so this debate then continues. the bill is about $60 billion in value. the opponents of the bill argue

there is too much pork attached to it. peter king, republican from new york with arthel last hour on "america's newsroom" he argued this all the pork had been stripped out of of it. for the critics that is not good enough at this point. we'll watch that and see if there is any movement. super storm sandy wrecked a lot of places in the east. arthel: an alert on syria's bloody civil war. we are getting new reports that rebels are launching an all-out assault on a sprawling military air base in the mourn part of the country. observers describe the offenses as the most intense yet on this airfield. leland vittert is live in jerusalem now. how successful are the repbls in thirebels in this new push. >> reporter: air power remains the regime's last trump card. they can use helicopter gun

ships, also planes to bomb some of the rebels strongholds. the rebels know they need air bases in order to get ammunition supplies. they are going after our place necessary a coordinated attack, three air bases right now under attack. aeufair bases are hard to defend by their very nation for the regime group. we've watched the defensive and it looks like this is going to be a successful offensive shall, the fighters behind this and the rebels are a group called the alnestra front. it shows how successful the rebels have become lately as they've gotten better demand and control fighting more like an army and shows the number of foreign fighters annex programmist extremists who are taking part in this fight for syria. arthel: what is this new fighting, though, what does it mean for the civilians? >> reporter: quite simply we're seeing a drastic rise in the

death toll of civilians. the u.n. has come out with a newest cat raised the death toll from 45,000 to now 60,000, and we're seeing the regime get a little more desperate as the noose tightens. they have just attacked a gas station on the outskirts of damascus, that is the capital and a civilian area where the rebels hold a strong strategic presence. the question going forward is going to be how many civilians is the regime willing to kill as they attempt to try to regain control of some of these areas. if thi his rerepeats itself the regime is willing to kill as many people as necessary to try to stay in power. back to you. arthel: 60,000 civilians, 60,000 people. leland vittert thank you very much for that live report from jerusalem. bill: 10:32 here in new york. new fallout from puerto rico washington's late night swerve to aeu kroeud the cliff. the deal raises taxes, increases

spending, kicks the nation's growing debt problem down the road at least two more months if not beyond leaving the u.s. bar link head long into another fiscal disaster. we have the president of american action forum with me now. good morning to you. >> good morning. >> we say happy in asterisks here. >> yeah. bill: now comes the hard part, right. arthel right. >> yes. bill: what is the hard part. >> passing tax increases, continuing spending programs and putting off any spending cuts. that leaves the debt unaddressed, the only way to address the debt is to have serious reforms through our entitlement programs. the immediate today cares, immediatmedicares and immediate today kaeudz that will collapse under their own weight which is a disservice to the poor. bill: you say they took the easy way out. tax the rich, don't go for any

cuts in spending. for every $40 of tax it was 1 dollar of spending is that what it comes down to. >> they should get one tkhaoe one cheer for note causing a recession and imposing great harm on americans. this didn't address the debt which is larger than our economy economy, it's costing us a million jobs. we are growing slowly. we need an aggressive strategy which is about cutting spending to address that debt. bill: tell me what you believe would have been the best possible outcome? >> i never thought that we'd get a large agreement on the debt in such a short time period as the lame duck. for me the best would have been no tax increases replace the sequester with more sensible long run daughter cuts and come up with a framework for the debt reduction, the tax reforms and entitlement reforms can be done this year, but a framework for how big they would be would have been the upper bound of what we

could have government even. we didn't even come close to that. bill: not even close. you wonder how hopeful you can be for the next round of negotiations. here is dave calm a moment ago member of congress on the floor of the house addressing the overhaul here. roll this and listen to this. >> let me just say that we not only need to grow the economy but we also need to address the fundamental causes of our debts and deficits and that is out of control spending, obligations that we have not got the financial wherewithal to meet. we need to strengther those programs and make sure they are sustainable for the long term but we also need to address the problem that is out of control spending. bill: you wish that would spread like a good disease in washington but it hasn't. dave camp is a republican from michigan. he made those comments late last night. go ahead, doug. >> i think he has it exactly right. take medicare, the gap is $300 billion and we have 10,000

in beneficiaries every day. that program is responsible by itself for a quarter of all the federal debt we've had in the past decade and it's going to fall apart if we don't fix it. it is important to seniors to fix it, it's important to the budget to get it under traol and it's a dangecontrol and it's a danger to our economy to leave it the way it is. bill: do you see -- do these leaders, whether it's the house, the senate, and the white house, do they have the guts now to do this? >> well, bill, that remains to be seen. you know, the ball is in the president's court. he's going to have a state of the union, he's going to have a budget that he has to put out, his previous budgets have been tremendous disappointments on this front. he has the opportunity to put out a budget that contains the entitlement reforms and tax reforms that would lead to a more prosperous and responsible future. we'll see. bill: do you think the republicans played the only hand they had to play on this deal?

>> they certainly did the best they could in bad circumstances. i think getting a deal and avoiding a recession is a victory that thud be recognized. getting some permanence to the tax code is a victory that should be recognized. ace said this is far from a slam dunk. we have a lot of work let too do and quite frankly democrats alcohol the white house and the senate and they need to do some of that work. bill: it's amazing through all this debate on this latest issue that no one talked about how this could affect jobs, put people back to work. wasn't that what the campaign was all about? >> there is no substitute for better growth. bee arwe are ambling along at a slow pace. this should be about getting the debt load off the economy, growing the economy and getting people back to work. bill: thank you. happy new year to you. out of washington, thank you. arthel: that didn't last long. check this out the nation's

first known recreational pot club in colorado has already closed its doors a day after its opening. the owner of the club telling a denver newspaper the landlord put the kibosh on the leash when they learned about the subject list satisfactory tee. the voters voted to utilize the limited use of marijuana. bill: once the word got out the owner didn't like it. arthel: didn't like it. the word got out somehow. by the way speaking of this twitter is blog me up about the sandy bill. i care about the people, they are saying, deal with the pork in the bill. i trust that representative king will get to the bottom of it, get out any pork there is, they've got to take care of the people, that is the bottom line. bill: you talked to him last hour too. i like how your iphone matches your outfit if. arthel: really. bill: that is really cool. arthel: and my lipstick. bill: that is some talent kid.

well done. let's called rocky mountain high out there in denver. arthel: i know nothing about that. bill: we are about to see a big lawsuit in college sports. pennsylvania's governor wants to sue the nc double a for a lot. we'll tell you why. arthel: talk about being in the right place at the right time a guy who caught a guy robbing his house an wasn't even on the ground. >> he went around to the windows, opening doors, or trying to open doors, looking in windows, and pretty well surveying the house. this is america.

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and don't get heartburn in the first place! [ male announcer ] e pill eachmorning. 24 hours. zero heartbur >> all we're saying is treat us the same the same way everybody has been treated. why the republican party has this by as against new york, new jersey, the northeast they are wondering why they are becoming a minority party, what they did last night was so eup immoral, disgraceful, irresponsible. you have families starving, families spread all over, living in substandard housing. they have to go a long way to get my vote on anyone. bill: that was republican congressman peter king speaking with arthel. lawmakers on the house floor arguing about sandy relief funding a bill that totals about

$60 billion at the moment. members from both sides of the aisle talking, joseph crowley, democrat from new york said this a moment ago. >> in the weeks after the storm my republican colleagues told us, not all by the way and i want to point out that mr. grim and mr. king, mr. dold and others were very, very helpful but the leadership i'm talking about told us they were with us and they would support us. i guess those are only words because last night we learned the truth. and thanks to their actions there is no additional federal assistance to help hard-working people rebuild and restart their lives. now i'm not a cynic, but i do wonder what if we told republicans that a few millionaires and billionaires lives were destroyed by this storm, whether they'd want to help all the families hurting because of sandy? and i wonder, what if republicans were promised that

by providing aid to families in need that in turn that they would get a tax break? would these inch ten seufs have changed theiincentives have changed their mind and promised action? it truly does appear their only pry port is helpi that have the most. bill: this debate continues on the house. new congress mourn i sworn in tomorrow around noontime. arthel: big developments in college football off-the-field. minutes from now pennsylvania's governor is expected to announce his lawsuit against the ncaa against sanctions imposed against penn state after the jerry sand dusky child abuse scandal. that is when the university's storied football program was banned from bowl games for four years and got hit with a $60 million fine. we have a criminal defense attorney, and fred te tecee is

a former federal prosecutor. i'll start with you fred, does the judge have a legal leg to stand on. >> you hear a lot about the antitrust cases. i understand that's what the case is going to be about. i've been involved in a lot of major antitrust cases over the years. they are very, very, very difficult cases to win. so, i won't get into all the details about it, but it's one thing to yell and cream about an antitrust lawsuit, it's a far different thing to win one. they made a contract with the university penn state and he's going to have to undue that. he has an upward road to who he. arthel: how do you see it? >> i don't think the state of pennsylvania has a leg to stand on, this is not an antitrust case. i don't even think he has a legal theory to stand on, and penn state is really the party that should be assert being the

case, not the state of pennsylvania, so i don't even think the state of pennsylvania has standing, so i don't think this case is going to fly at all in court. i think the ncaa will be able to throw it out-of-court. arthel: part of the lawmakers concern there in pennsylvania is that where is that money going to be spent, the $60,000 fine that the university is going to pay. go ahead, fred. >> well, you're correct and that is part of their objections as to where the money is going to go. the first 12 million has been spend and some of it has gone out of pennsylvania. they are angry about that. that is what was the deal. penn state is part of the commonwealth of pennsylvania. so the state does have standing to bring the case. in order to win and antitrust case you have to show harm to the consumer. you've seen it between the usfl and the nfl. agree with brian. filing the lawsuit and wink i are two very different things. i don't see them winning it.

>> may i mention one other thing. the bigger issue here is not whether this is an antitrust case or not. i went to penn state, i grew up in american pennsylvania. quite frankly i'm embarrassed by what the governor is doing. the san dust see scandal was never about penn state. it was a platform to allow penn state to step forward and make national change in preventing child abuse. i'm the lead lawyer on the miramonte child abuse case. we could use some of that money that has been earmarked as a sanction to have it be sent to los angeles. for pennsylvania to again make this about penn state is an embarrassment. >> look, i don't blame brian for being upset about it. it's interesting. i went to school in central pennsylvania which is now part of penn state. one in 117 americans has some affiliation of penn state i. don't disagree with you that

what they did and what happened with sandusky was the most despicable thing i've ever seen. whether or not the ncaa is the view it place to get the money. i get that you want to get that money for child advocacy, i don't blame. that is an erstwhile goal. but -- and one other thing and i don't want to take up all the time. when tom corbett was the attorney general and the penn state investigation began for the first time in 30 years we had a democrat, kathleen cane elected attorney general. she was concerned the way core about it handled the attorney general's investigation. i think this is a political salvo to cut off kathleen cane getting sworn in today. arthel: if you put this in the court of public opinion, you say, look $60 million, why should that money go into pennsylvania anyway if they were somehow found at fault.

>> a good point. that is a great point. how do we even know that this money is going to be used properly in the state of pennsylvania? how can we entrust that the money is going to be used properly? the ncaa needs to step up here too. do they have measures in place to make sure that money released whether it's in pennsylvania or elsewhere is going to be used to prevent child abuse, to educate people on child abuse? we don't know that. arthel: that's a question i think a lot of people will be looking to answers for from the ncaa. thanks so much for your comments this morning. bryan clay pool and fred tecee, good to see both of you. bill: we'll await the press conference and bring it to you when we get it. jon scott is standing by. hospitals rolz your way in 11 minutes. have you kept your resolution. jon: i've kept them all so far. looking good. good morning to you. the markets are surging today after a very last-minute deal to

avert so-called fiscal cliff. but what is in it? one hint, your paycheck is shrinking beginning as soon as this week. what else is in the latest gift from congress and the white house? we'll talk about that. and i'll also tell you what congress did not do to help people affected by hurricane sandy. plus, new evidence a little extra weight might not be such a bad thing, but don't break those resolutions and start eating the junk food just yet either. bill. bill: it's too late for that. jon: oh. bill: serious victim over the holidays. see you, jon. jon: see you. bill: this is not your average home auction down the street. you have a chance to own a glamorous piece of american history. guesguess who once owned that? arthel: answer when we come back. [ fishing rod casting line, marching band playing ]

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arthel: welcome back. a lucky few getting a chance to own a bit of history at a special new year's auction. several items belonging to former first lady jackie kennedy up for grabs in scottsdale, arizona, including pieces from her french furniture collection and other items. >> it was her writing desk when she was a photographer in washington. most people don't realize she had a day job, prior to her famous marriage this was actually her writing desk. when she closed her apartment when she was getting engaged to you know who this is where this comes from. >> that was snagged for 3500 bucks. bill: it would be a cool thing to have. arthel: very cool. bill: in the wake of several natural disasters it shows out

insurance companies want a teur are picture to provide proof of the contents of your home and not just your own memory. alicia acuna is watching that story how do these temperatures work? >> reporter: they gather detailed descriptions and organize inventory of things that belong to you. so in the event of a disaster, robbery, or even divorce you have documented proof of what is yours. carry mitchell owns together we stand home inventory in colorado springs. for an average of $549 she tkoplcomes in takes down serial numbers and at least six photographs of your valuables. the list goes on a flash drive or cd. she started her company after a fire destroyed 350 homes last year. the flames moved so fast folks barely got out with their lives. >> some people had 15 minutes they could go through and just click on their phone whatever they could get for the most part people had to grab a few things and run.

they all say i would have given anything this i could have done that. now they are trying to recollect everything they have and it's hard to remember. who can remember everything that you own. arthel: one tip when they do give that you flash drive don't keep it in your house, bill. bill: good point. makes sense. don't insurance companies provide this service already? arthel: actually most insurance companies provide you the opportunity to do it yourself, but a lot of people just simply don't have the time. if you think about it. it's not just televisions and the silver, but collectibles, patio furniture, tools, sporting equipment, things that are easily forgotten. >> a lot of times the insurance companies would, you know, question what you did have and what the value was, and if you have pictures of it, plus you have, you know a serial number or whatever, then they can -- you can track it down to what those were, you know, cast at the time. arthel: this actually helps the insurance companies too because

it keeps things on the up and up. bill: alicia acuna with good advice to know. arthel: now reaction to a fiscal cliff deal that left nearly everyone wanting motorcycles the latest from lawmakers who say the fight for spending cuts is more important than ever. >> you know i've never seen a compromise where everybody got everything that they wanted, or liked everything that they got. i certainly don't like everything that i see in this bill, and i certainly didn't get everything that i wanted.

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